Abstract
Purpose : US policy towards China now focuses on decoupling. Due to decoupling, the supply chain based on the existing global value chain (GVC) will have to be adjusted to a large extent, and the production network in Asia, centered on China, will be reorganized.
 Research design, data and methodology : This paper is the first to quantitatively estimate the effect of the US decoupling policy. Decoupling will seriously hit the backward and forward linkages of China's GVC, but US GVCs will not be significantly affected.
 Results : Due to decoupling, Korea’s exports of intermediate goods to China will likely be greatly reduced, and value-added exports will decrease by US$65.7 billion to US$120.5 billion.
 Conclusions : The GVC impact analysis in this paper shows Korea should seek an active industrial policy to strengthen forward linkages while minimizing backward linkage losses.
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